Bitcoin drops 13% in a week; Saylor blames AI capital rotation
In brief
- Bitcoin dropped 13% in a week to $63,429, down from October 2025 all-time high
- Michael Saylor blamed capital rotation into AI rather than Bitcoin fundamental weakness
- Bitcoin ETFs saw $4.3 billion in outflows since May 14 with no positive inflow days
- MicroStrategy shares fell 15% in five trading days; preferred stock STRC dipped below par
- Crypto market cap declined 3.1% to $2.29 trillion with $1.74 billion in liquidations
Saylor's AI Capital Rotation Thesis
Bitcoin dropped 3.7% in the last 24 hours, dipping as low as $61,559 late Wednesday. Saylor posted on X that capital markets are funding the AI buildout at historic scale, characterizing the situation as capital rotation, not Bitcoin impairment. The framing matters. Saylor isn't arguing Bitcoin is broken—he's saying investors are temporarily redirecting capital to a hotter asset class.
The macro backdrop supports his read. Macroeconomic uncertainty caused by continued geopolitical risks and concerns of inflated energy prices is impacting demand for risk assets broadly. When capital rotates into AI, it has to come from somewhere. Bitcoin, despite its bull-market narrative, is often the first port of call when traders need dry powder.
ETF Outflows and the Conviction Question
Bitcoin ETF outflows exceeded $4.3 billion since May 14, according to Farside data. More telling: the ETFs have not had a day of positive inflows since May 13, when they brought in around $131 million. These products are typically seen as a barometer of institutional and retail investor demand. Consecutive days of outflows signal weakening conviction.
The entire crypto market cap declined more than 3.1% in the last 24 hours to $2.29 trillion, with liquidations hitting $1.74 billion during the span. Bitcoin longs accounted for $635 million of those liquidations, according to CoinGlass.
Strategy's Own Moves Raise Questions
Strategy itself sold 32 BTC for $2.5 million last week. The firm holds more than $53.8 billion in Bitcoin, so this sale was a rounding error. Yet analysts had previously warned that any sale could trigger a perception shift and weakening conviction in BTC.
The impact on Strategy's own valuations has been sharp. Shares in the firm fell 15% in the last five trading days to around $128. STRC, its preferred stock offering that has helped fuel recent Bitcoin purchases, dipped well below its par marker of $100 to $95.35. When the vehicle designed to buy Bitcoin is trading at a discount, the math for further accumulation gets tougher.
